Adnoc approves Dh1.194b interim dividend payment

The board of directors of Adnoc Distribution have approved the payment of an interim dividend for the first six months of 2019 of Dh1.194 billion, at 9.55 fils per share, equivalent to $325 million, to its shareholders.
This is the first payment in what is expected to be a full-year 2019 dividend payment of Dh2.39 billion, at Dh19.10 fils per share, reflecting a 62 per cent increase compared to last year's dividend of Dh1.47 billion. As per approved dividend policy, the second and final dividend for 2019 is expected to be paid in April 2020, subject to the board of directors' recommendation.
Today's announcement marks the first dividend payment under Adnoc Distributions new dividend policy unveiled last April. The decision to significantly increase the company's dividend policy was rooted in recognition of the company's robust financial performance and cash position in 2018, as well as confidence in the company's strong growth prospects and cash flow generation ability going forward.
Under the policy, the company intends to increase its annual dividend payment, starting this year, as follows: an annual dividend for 2019 of Dh2.39 billion, equivalent to Dh19.10 fils per share and a 62 per cent increase compared to 2018; an annual dividend for 2020 of Dh2.57 billion, equivalent to Dh20.57 fils per share, a 75 per cent increase compared to 2018; and a minimum payout of 75 per cent of distributable profits from 2021 onwards.
Adnoc Distribution expects to continue to pay half of the annual dividend in October of the relevant year and half in April of the following year. Backed by a long-term sustainable growth plan, a solid balance sheet and strong cash flow generation ability, the new dividend policy reflects the shareholders' trust in the company, following its positive financial performance in 2018. This trend continued in the first half of 2019, when the company reported a healthy Dh1.17 billion in net profit, an increase of 4.3 per cent from the same period last year.
Saeed Mubarak Al Rashdi, acting chief executive officer of Adnoc Distribution, said: "Our progressive dividend policy demonstrates our commitment to our shareholders as we advance our strategic priorities of steady and sustainable growth, enhanced customer experience and attractive capital returns for our shareholders. With our ability to generate cash flow, we are confident in our ability to pay a generous dividend to our shareholders while also maintaining significant capacity to deploy capital through a disciplined investment strategy aimed at continuing our efforts to expand our fuel station network, with a focus on the underserved Dubai market, as well as investing in our non-fuel business."
- business@khaleejtimes.com